The correct answer is (a) Legal body.
A State Finance Commission is a statutory body constituted by the State government to review the financial position of the local bodies and to make recommendations to the government on the principles that should govern the distribution of resources between the State and the local bodies. The Commission is also required to make recommendations on the measures that should be taken to improve the financial position of the local bodies.
The State Finance Commission is a legal body because it is constituted by a law passed by the State legislature. The Commission has the power to summon witnesses and to require the production of documents. The Commission’s report is submitted to the State government, which is required to take appropriate action on the recommendations of the Commission.
The other options are incorrect because:
(b) A non-statutory body is a body that is not created by law.
(c) A constitutional body is a body that is created by the Constitution.
(d) None of the above is a correct answer.